THE country’s financial markets are expected to benefit from stronger stability and more efficient dollar transactions as the Bankers Association of the Philippines (BAP) renewed its partnership with Citi Philippines and the Philippine Clearing House Corp. (PCHC) for the continued operation of two critical payment infrastructures — the Philippine Domestic Dollar Transfer System (PDDTS) and the Payment-versus-Payment (PvP) System.
In a statement, the agreement, signed on Aug. 28, 2025, secures the collaboration until Aug. 17, 2030. Citi will remain as Settlement Bank, while PCHC will serve as Clearing Operator and Operator of a Designated Payment System.
PDDTS, established in 1995, enables real-time domestic U.S. dollar transfers among local banks, while PvP, launched in 2003, reduces risks in cross-currency transactions. Both were designated by the Bangko Sentral ng Pilipinas (BSP) in 2022 as systemically important payment
systems (SIPS).
Under the renewed partnership, the systems will undergo major upgrades, including stronger IT infrastructure, 99.5 percent uptime, faster incident response, and enhanced disaster recovery protocols. PDDTS will also shift from using the London Interbank Offered Rate (LIBOR) to the Effective Federal Funds Rate (EFFR) for account interest calculations.
“Citi Philippines is grateful for the opportunity to continue being the country’s sole settlement bank for PDDTS and to continue working with the PCHC, BAP and the BSP in making a mark — not just on our industry, but in the lives of our clients and the Filipino people,” said Citi Philippines chief executive officer (CEO) and Banking head Paul Favila.
PCHC president and CEO Emmanuel Barcena said the agreement underscores the sector’s push for resilient and seamless operations. “We deliver efficient and resilient operations that safeguard and power our financial system,” he said.
BAP president TG Limcaoco called the renewal a milestone for the industry, emphasizing its role in ensuring finan-
cial stability.
“The success of the PDDTS and PvP has always been a story of collaboration. Together, we will continue to strengthen our systems, adapt to change, and serve the needs of our economy,” Limcaoco said.
The initiative is expected to keep the Philippines’ payment ecosystem aligned with global standards while supporting innovation and growth in the banking sector under BSP’s oversight. / KOC